The Central Bank of Nigeria (CBN) has yanked the licenses of two major mortgage banks,Aso Savings and Loans Plc and Union Homes Savings and Loans Plc. The CBN claims this is part of a so-called “strategy” to clean up the mortgage industry, but the suddenness of the action has left customers and industry watchers reeling.

According to a statement from the CBN’s Acting Director of Corporate Communications, Mrs. Hakama Ali, the banks were accused of “persistent and significant regulatory breaches.” The CBN alleges that both institutions flouted key provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and ignored the Revised Guidelines for Mortgage Banks. But critics are questioning whether the CBN is being transparent about its motives or simply flexing its regulatory muscle.

The CBN’s laundry list of accusations includes failing to meet minimum capital requirements, not having enough assets to cover liabilities, and being “critically undercapitalised.” The banks also allegedly ignored repeated directives from the CBN. While these are serious claims, the CBN has not provided detailed evidence to the public, leaving many to wonder about the real story behind the crackdown.

The CBN insists that revoking the licenses is all about “stability” and “public confidence,” but the move has sparked panic among depositors and stakeholders. The central bank says it’s committed to protecting customers’ deposits, but with two major players suddenly out of the game, many are left questioning the safety of their funds and the future of the mortgage sector.

Mortgage banks are supposed to be the backbone of Nigeria’s housing finance system, but with the CBN’s heavy-handed approach, the industry is now facing uncertainty. The message from the CBN is clear: fall in line or face the consequences. But at what cost to customers and the broader economy?

Analysts warn that the fallout from this decision could be significant, especially for those who trusted Aso Savings and Union Homes with their money. The CBN claims it will keep a close eye on the sector, but confidence has already been shaken. Is this really about protecting the public, or is it just regulatory overreach?

Mrs. Hakama Ali doubled down on the CBN’s stance, promising more “robust” actions to come. But with the regulatory landscape shifting so abruptly, many are left wondering who’s really looking out for the interests of ordinary Nigerians.